problem 1-2-3

Problem 1: Main Street ke Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours. Strawberry and vanilla flavors are produced in Departament SV and chocolate is produced in Department C Sven manages Department SV and Charlene manages Department C. The plant overhead for Main Street Ice Cream Company is $216,000 for previous month. The product costs (per thousand gallon) follow Strawberry Vanilla Chocolate Direct Labor (per 1000 gallons) S1.000 $1,100 $1,500 Raw material (per 1000 gallons) $500 5600 If the number of hours of labor per 1,000 gallons is 50 for strawberry, 55 for vanilla, and 75 for chocolate, compute the total cost of 1,000 gallons of cach flavor using Plantwide Allocation Method. S800 Problem 2: For the Main Street Ice Cream Company presented in Problem 1, Charlene's department uses older, outdated machines. She believes that her department is being allocated some of the overhead of Department SV, which recently bought state-of-the-art machines. Atler she requested that overhead costs he broken by department, the following information for that month was discovered: Department $39,600 Department Overhead Machine-hours Labor-hours Department SV SI 76,400 25,200 25.200 36,000 18,000 (a) Using machine hours as the department allocation base for Department SV and labec-hours as the department base for Department C. compute the allocation rate for cach department (b) Compute the cost of 1,000 gallons of each flavor of ice cream using department allocation rales computed in (b) if the number of machine-hours for 1.000 gallons of cach of the three flavors of ice cream are as follows: strawberry, 50, vanilla, 55and chocolate, 75. Use Department Allocation Method. Problem 3: For the Main Street lee Cream Company presented in Problem 2. Compute the cost of 1,000 gallons of each flavor of ice cream using Activity-Based Costing Method Use the following data for SV department: Cost Cost Driver Activity Machine setups Setting up Quality inspection Running machines Number of machine setups Number of inspections Number of machine-hours Cost Driver Volume Strawberry Vanilla 200 150 50 60 15,120 10,080 S$2.920 $35,280 S88,200